Industrial Chemicals Charges (Customs) Amendment Regulations 2023

Administered by Department of Health, Disability and Ageing

Legislation au F2023L01104 Regulations Not in force Legislative Instrument

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EXPLANATORY STATEMENT

 

Issued under the authority of the Assistant Minister for Health and Aged Care

 

Industrial Chemicals Charges (Customs) Act 2019

 

Industrial Chemicals Charges (Customs) Amendment Regulations 2023

 

 

 

The Industrial Chemicals Charges (Customs) Amendments Regulations 2023 (the Regulations) reduce registration charge amounts set out in the 2023-24 Cost Recovery Implementation Statement (CRIS) for the Australian Industrial Chemicals Introduction Scheme (AICIS) from 1 September 2023.

 

Authority

The Industrial Chemicals Act 2019 (the Act) establishes the Australian Industrial Chemicals Introduction Scheme (AICIS), the national regulatory framework for the introduction (importation or manufacture) of industrial chemicals.

 

Section 13 of the Act provides that a person who introduces (imports or manufactures) an industrial chemical must be registered with AICIS.

 

Section 20 of the Act provides that a person who is registered under the Act is liable to pay a registration charge.  Paragraph 21(a) of the Act provides that the amount of registration charge payable by a person in relation to a registration year is the amount prescribed by regulations made under the Industrial Chemicals Charges (Customs) Act 2019 (the IC Charges (Customs) Act), so far as the charge is a duty of customs.

 

Section 9 of the IC Charges (Customs) Act provides that the Governor-General may make regulations prescribing matters required or permitted by this Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to this Act.

 

The Industrial Chemicals Charges (Customs) Regulations 2020 (the principal Regulations) prescribes the amount of registration charge payable by a person in relation to registration under the IC Act, so far as the charge is a duty of customs, for the purposes of section 7 of the IC Charges (Customs) Act. The principal Regulations set out an eight-level charging structure where the amount of registration charge payable is based on the value of relevant industrial chemicals introduced by the person in the previous financial year.

 

Purpose

The purpose of the Industrial Chemicals Charges (Customs) Amendment Regulations 2023 (proposed Regulations) is to reduce the amount of registration charge within the existing eight-level charging structure prescribed in the principal Regulations from 1 September 2023.

 

Background

It is government policy that the full costs of AICIS activities are recovered from the regulated industry through fees for services and charges.


Consultation

A draft CRIS was published for public consultation in June 2023 demonstrating how regulatory charging has been developed to comply with the Australian Government Charging Framework (Charging Framework). It also detailed the proposed regulatory charges (a reduction to registration charge amounts by approximately 11.7%) from 1 September 2023.

 

A total of eight (8) submissions were received during the four-week consultation period from industry stakeholders (including an industry association). There was general support for the reduction of registration charges and maintaining fees for services at 2022-23 rates. All submissions were considered in finalising the CRIS which includes a summary of main stakeholder views and corresponding responses. The CRIS was approved by the Assistant Minister for Health and Aged Care in August 2023 and published on the AICIS website.

 

Details of the Regulations are set out in the Attachment.

 

The Act specifies no conditions that need to be satisfied before the power to make the Regulations may be exercised. The Regulations are a legislative instrument for the purposes of the Legislation Act 2003.

 

The Regulations commence on 1 September 2023.


ATTACHMENT

 

Details of the Industrial Chemicals Charges (Customs) Amendment Regulations 2023

 

Part 1 – Preliminary

 

Section 1 - Name of Regulations

 

This section provides that the title of the Regulations is the Industrial Chemicals Charges (Customs) Regulations 2023.

 

Section 2 - Commencement

 

This section provides for the Regulations to commence on 1 September 2023

 

Section 3 - Authority

 

This section provides that the Industrial Chemicals Charges (Customs) Amendment Regulations 2023 is made under the Industrial Chemicals Charges (Customs) Act 2019.

 

Section 4 - Schedules

 

This section provides that each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.

Schedule 1 - Amendments

 

Industrial Chemicals Charges (Customs) Regulations 2020

 

Item [1] - subsection 5(2)

 

Subsection 5(2) of the principal Regulations sets out the amount of registration charge that persons must pay in order to introduce industrial chemicals into Australia. The amount of the registration charge is based on the value of industrial chemicals that an introducer imported or manufactured in the previous financial year. There are 8 incremental levels of introduction value thresholds with increasing registration levy charges. This item reduces the amount of registration charge for each level (except level 1 which has a nil registration charge) maintaining the existing 8-level system from 1 September 2023 as set out in the approved AICIS CRIS 2023-24.


Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

Industrial Chemicals Charges (Customs) Amendment Regulations 2023

 

This Disallowable Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

 

Overview of the Disallowable Legislative Instrument

The Industrial Chemicals Act 2019 (the Act) establishes the Australian Industrial Chemicals Introduction Scheme (AICIS), the national regulatory framework for the introduction (importation or manufacture) of industrial chemicals.

 

It is government policy that the full costs of AICIS activities are recovered from the regulated industry through fees for services and charges.

 

The purpose of the Regulations is to amend the Industrial Chemicals Charges (Customs) Regulations 2020 (the principal Regulations) to reduce the amount of registration charge (by approximate 11.7%) payable by a person in relation to registration under the Act, so far as the charge is a duty of customs, for the purposes of section 7 of the IC Charges (Customs) Act. The Regulations maintain the existing eight-level charging structure where the amount of registration charge payable is based on the value of relevant industrial chemicals introduced by the person in the previous financial year.

 

 

Human rights implications

As the Regulations do not introduce any changes to the principal Regulations other than to implement the changes outlined above, this Disallowable Legislative Instrument does not engage any of the applicable rights or freedoms.

 

Conclusion

This Disallowable Legislative Instrument is compatible with human rights as it does not raise any human rights issues.

 

The Hon Ged Kearney MP

 

Assistant Minister for Health and Aged Care

Overview

The Industrial Chemicals Charges (Customs) Amendment Regulations 2023, enacted under the authority of the Assistant Minister for Health and Aged Care, amend the Industrial Chemicals Charges (Customs) Regulations 2020. This legislative update reduces the registration charge amounts set out in the 2023-24 Cost Recovery Implementation Statement (CRIS) for the Australian Industrial Chemicals Introduction Scheme (AICIS) starting from 1 September 2023. The purpose of these amendments is to align the regulatory charging with government policy, which seeks to recover the full costs of AICIS activities from the regulated industry through fees for services and charges. The Industrial Chemicals Act 2019, establishing AICIS as the national regulatory framework for the introduction of industrial chemicals, mandates that a person introducing industrial chemicals must be registered with AICIS and is liable to pay a registration charge, the amount of which is prescribed by regulations under the Industrial Chemicals Charges (Customs) Act 2019. Public consultation was conducted in June 2023, resulting in the proposed reduction of registration charges, which was subsequently approved and published on the AICIS website.

Scope and Application

The Industrial Chemicals Charges (Customs) Amendment Regulations 2023 apply to individuals and entities engaged in the importation or manufacture of industrial chemicals in Australia. These Regulations are an amendment to the Industrial Chemicals Charges (Customs) Regulations 2020, which themselves are established under the Industrial Chemicals Charges (Customs) Act 2019. The primary purpose of these Regulations is to adjust the registration charge amounts set out in the 2023-24 Cost Recovery Implementation Statement (CRIS) for the Australian Industrial Chemicals Introduction Scheme (AICIS) from 1 September 2023. The Industrial Chemicals Act 2019 provides the overarching legislative framework, stipulating that persons introducing industrial chemicals must register with AICIS and are liable to pay a registration charge. The amount of this charge is prescribed by the Industrial Chemicals Charges (Customs) Act, as far as it constitutes a duty of customs. These Regulations aim to reduce the registration charge amounts within the existing eight-level charging structure, maintaining the linkage between the charge and the value of industrial chemicals introduced in the previous financial year. The Regulations do not specify any exclusions, exemptions, or thresholds beyond those already outlined in the principal Regulations.

Key Provisions

The Industrial Chemicals Charges (Customs) Amendment Regulations 2023 (the Regulations) primarily modify the registration charge amounts outlined in the Industrial Chemicals Charges (Customs) Regulations 2020, effective from 1 September 2023. These amendments are pursuant to section 9 of the Industrial Chemicals Charges (Customs) Act 2019 (IC Charges (Customs) Act), which empowers the Governor-General to make regulations necessary for implementing the Act. Section 5(2) of the principal Regulations is specifically amended to reduce the registration charges for introducing industrial chemicals into Australia (section 1 of Schedule 1). The changes are based on the value of industrial chemicals introduced in the previous financial year, preserving the existing eight-tiered charge structure. The Regulations impose specific obligations on entities involved in the introduction of industrial chemicals. Registered persons under the Industrial Chemicals Act 2019 (IC Act) must comply with the reduced registration charges set out in the Regulations. This includes ensuring that the appropriate registration charge is paid in accordance with the new rates from 1 September 2023. Failure to comply with these requirements may result in legal repercussions as detailed further in the text. Breaches of the obligations imposed by the Regulations can lead to civil and criminal penalties. The IC Act does not explicitly outline specific offences or penalties for non-compliance with the registration charge requirements. However, general provisions within the IC Act and related Acts may apply, where applicable, including potential fines and imprisonment for serious breaches. The precise penalties would depend on the specific nature and severity of the breach, as well as any additional relevant legislation. Under the Industrial Chemicals Charges (Customs) Act 2019, failure to adhere to the prescribed regulations could result in civil penalties. The exact penalties are not specified in the provided text but typically include fines that can be substantial, depending on the severity and frequency of the breach. In severe cases, criminal charges might apply, leading to more severe penalties, including imprisonment. It is essential for entities to ensure full compliance to avoid these potential consequences.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.